The latest Xbox sells for $700 to competitive gamers, who would pay only $460 if they...

The latest Xbox sells for $700 to competitive gamers, who would pay only $460 if they have to wait a year. Regular gamers would pay $400, regardless the time of purchase. If the MC of the Xbox is $240, and there are equal number of each customer type, compute the optimal sale scheme for the latest Xbox (disregard the time value of money).

For reference, read Ch.14/ Indirect Price Discrimination: Table 14.1 (Demand for Software) and Table 14.2 (Potential Software Pricing Scheme)

Expert Solution

Rahul Sunny answered 1 year ago

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